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England and Wales High Court (Queen's Bench Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Prankerd, R (on the application of) v The Carrick Districk Council [1998] EWHC 2005 (QB) (24 July 1998) URL: http://www.bailii.org/ew/cases/EWHC/QB/1998/2005.html Cite as: [1999] QB 1119, [1998] 2 Lloyd's Rep 675, [1999] 2 WLR 489, [1998] EWHC 2005 (QB) |
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QUEEN'S BENCH DIVISION
(DIVISIONAL COURT)
The Strand |
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B e f o r e :
____________________
R E G I N A | ||
-v- | ||
THE CARRICK DISTRICK COUNCIL | ||
EX PARTE PATRICIA YVONNE PRANKERD |
____________________
180 Fleet Street, London EC4A 2HD
Tel: 0171 831 3183
Official Shorthand Writers to the Court)
MR T MOULD [MS K McHUGH-JUDGMENT ONLY]
(Instructed by the Corporate Services Department, Carrick District Council, Truro, Cornwall TR1 1EB)
appeared on behalf of the Respondent.
____________________
Crown Copyright ©
MR JUSTICE LIGHTMAN:
INTRODUCTION
ISSUES
LEGISLATIVE HISTORY
"If the Master of any Vessel in respect of which any Rate is payable to the [Respondent] refuse or neglect to pay the same, or any part thereof, the Collector of Rates may ... go on board of such Vessel and demand such Rates and on non-payment thereof, or any part thereof, take, distrain or arrest ... such vessel and detain ... until the Rates are paid ..."
Section 3 of the 1847 Act defines the word "vessel" as follows:-
"The word 'vessel' shall include ship, boat, lighter and any craft of every kind, and whether navigated by steam or otherwise."
Dues on ships
181. Dues on ships and goods are invariably prescribed by statute. Revenue from dues on ships, consisting of harbour, dock, quay or river conservancy dues, or some combination of these, is applied to cover the cost of such services as dredging, lighting and buoying the channel, the maintenance of river quay berths or enclosed wet docks and in some cases dock pilotage, dock tugs etc. Dues within the prescribed statutory limits are charged to shipowners (or charterers) normally on the basis of the net registered tonnage of the ship. The due normally allows the ship to remain for a specified period, e.g. 30 days. ...
Dues on goods
182. ...
Passenger dues
183. ...
Other services and facilities
185. Charges under this head cover a very wide range of services such as the use of cranes, grabs, weighing machines, graving docks, the supply of water, warehousing, etc.
In its Conclusions and Recommendations in paragraph 210, the Report recommended the continuation of the two distinct categories of charge, but with some changes to the existing controls over the quantum of these charges.
"'harbour' ... means any harbour, ... and any port, and includes a dock, a wharf, ...
'ship' where used as a noun, includes every description of vessel used in navigation, ...
'ship, passenger and goods dues' means, in relation to a harbour, charges ... of any of the following kinds, namely
(a) charges in respect of any ship for entering, using or leaving the harbour, including charges made on the ship in respect of marking or lighting the harbour;
(b) charges for any passengers embarking or disembarking at the harbour (but not including charges in respect of any services rendered or facilities provided for them); and
(c) charges in respect of goods brought into, taken out of, or carried through the harbour by ship (but not including charges in respect of work performed, services rendered or facilities provided in respect of goods so brought, taken or carried);"
The Parliamentary purpose in including the words in bracket in (b) and (c)
was "clarification": see Hansard, House of Lords, 16 April 1964 p.645.
NAVIGATION
Section 44 of the 1847 Act confers the power to distrain on "vessels", which are defined in Section 3 of the 1847 Act as including ships of every kind however navigated. Section 26 of the 1964 Act provides that the power to distrain conferred by Section 44 of the 1847 Act shall be exercisable in respect of "ship dues" which are defined as "charges in respect of any ship for entering, using or leaving the harbour"; and Section 57 of the 1964 Act defines "ship" as including "every description of vessel used in navigation".
"To my mind the phrase 'used in navigation' conveys the concept of transporting persons or property by water to an intended destination ... 'Navigation' is not synonymous with movement on water. Navigation is planned or ordered movement from one place to another."
The relevant phrase is "used in navigation" as contrasted with the phrase "used for navigation". The phrase "used for navigation" connotes that the actual current use of the ship is for navigation purposes; by way of contrast, the phrase "used in navigation" connotes that (irrespective of the actual current use) the ship is actually or potentially capable of being used for navigation. According to the ordinary use of the English language a ship remains "used in navigation" though rendered incapable of navigation, so long as there is a reasonable expectation that it will regain its capacity to navigate: see Kennedy on Salvage 5th Ed para 155, and compare Pelton v. North of England P&I Assoc (1925) 22 LLR 510 at 512 with European and Australian Royal Mail v. P&O (1866) 14 LT 704. In deciding whether a ship is "used in navigation", it is a relevant consideration that it has its own means of propulsion and direction, but this is not essential: see Kennedy on Salvage 5th Ed para 155. A craft which is capable of transporting persons or property from one place to another is used in navigation though it is incapable of independent movement and the necessary element of ordered movement is supplied by another vehicle: see The Mac (1862) 6 PD 126; The Mudlark [1911] P 116 and The Harlowe [1922] P 175.
LEVYING DISTRAIN ON PRIVATE YACHTS
"Recovery of Tonnage Rates by Distraint of Ship and Tackle".
(The Queen's Printer copy of 1847 Act shows that these words appear as a sidenote and not, as shown in the Halsbury Statutes Vol 34 p27, a headnote). A sidenote, though part of the Act, is of limited assistance in construing an Act since its function is merely to provide a brief, and therefore possibly inaccurate, guide to the content of a section. I do not think that the sidenote in this case can operate to cut down the wide meaning of the word "rate" in Section 3 of the 1847 Act and limit the availability of distraint to the payment of tonnage rates (inferentially) by commercial vessels. The explanation for the sidenote is likely to lie in the fact that at the time of the passing of the 1847 Act tonnage rates were the only type of rates on ships then contemplated. (That this was the normal basis for charging even in 1962 is confirmed by para 181 of the Report cited earlier in this judgment). But that does not preclude the availability of distraint for rates at a later date imposed by reference e.g. to length of a ship as opposed to its tonnage. But whatever may be the position under the 1847 Act, Section 26(3) of the 1964 Act provides that a harbour authority may charge "ship, passenger and goods dues": there is no limitation that ship charges can only be imposed in respect of commercial vessels or by reference to tonnage; and the sanctions for non-payment of "dues" under the 1847 Act (namely distraint and payment of a triple penalty) are made available in respect of non-payment of ship charges. Accordingly, the Respondent is clearly empowered to distrain on any ship, whether commercial or private yacht, for non-payment of ship dues.
MEANING OF SHIP DUES
(a)
"... charges made by harbour authorities are essentially of two kinds. There are dues which pay for the enjoyment of the basic or essential harbour or port works and there are further charges which pay for the enjoyment, usually optional, of ancillary services. Dues are to some extent in the nature of a tax, the amount payable by a user not necessarily being directly related to the service received by that user". Douglas on Harbours, Coasts and Pilotage 5th Ed p.101.
Historically it has long been a basic concept of harbour legislation that there are two forms of charge, to each of are attached different incidents. The due payable for use of a harbour as a harbour is of the nature of a tax, whose payment entitles the person making the payment to use of the harbour (subject only to compliance with the bylaws) without interference by the harbour authority, and the payment of the tax is secured by provisions for distraint and the attachment of penalties in case of evasion of payment. This is reflected in Section 33 of the 1847 Act, which provides that on payment of the rates payable under the Special Act, the public shall be entitled to use the harbour "for the shipping and unshipping of goods and the embarking and landing of passengers"; in Section 44 which confers powers of distraint in case of non-payment; and in Section 43 which provides for payment of penalties in case of evasion of payment. These charges are distinguished from charges for the use of other ancillary (usually optional) services e.g. the use of a crane and mooring rights. The payment of charges for these services is not likewise secured.
(b) The 1964 Act, whilst not a Consolidating Act and making some important changes in the law relating to harbour charges, did not depart drastically from the basic concepts which had long been embodied in harbour legislation (see Douglas supra); and in particular (as is evidenced by the Report and the passages cited in Hansard) Parliament intended in the 1964 Act to perpetuate the divide between the two forms of charge in Sections 26 and 27 and the continuing attachment to charges falling within Section 26 of the provisions securing their payment conferred by Sections 44 and 45 of the 1847 Act.
(c) Support is to be found in the definition of "ship passenger and goods dues" in Section 57 of the 1964 Act. It is there spelt out in respect of "passenger" and "goods dues" (to clarify any doubts that might otherwise arise) that charges for services rendered and facilities provided in respect of them are not included within the definition. These are plainly optional and ancillary services. The absence in the case of "charges in respect of any ship ... using ... the harbour" of any like express exclusion of charges in respect of any services rendered or facilities provided, is not indicative that in case of use of the harbour by a ship such charges may be included within the term "ship dues". The explanation for this omission is given by Douglas supra at para 10.33:
"the charges described in paragraph (a) of the definition are expressed to be charges 'in respect of ... using the harbour" and ... having regard to the definition of 'harbour' in Section 57I(1), this could not include charges in respect of facilities in the sense mentioned above. There was therefore no need expressly to exclude charges in respect of ancillary matters as there was in paragraph (b) and (c) where the words 'charges for any passengers embarking or disembarking at the harbour' and 'charges in respect of goods brought into, taken out of or carried through the harbour' might each, in the absence of the express exclusion, have included charges for ancillary matters."
(d) I find no contra-indication in the definition of "harbour" in Section 57 of the 1964 Act as meaning a harbour and including a dock or wharf. The suggestion is made by the Respondent that the express inclusion of a dock or wharf is indicative that the word "harbour" includes any physical feature within the geographical area in question and accordingly extends to moorings. I disagree for two reasons. First a dock or wharf is (unlike a mooring) usually an essential feature of a harbour:
"A harbour in its ordinary sense was a place to shelter ships from the violence of the sea, and where ships were brought for commercial purposes to load and unload goods. The quays were a necessary part of the harbour": per Lord Esher MR in The Queen v. Hannam (1885) 2 TLR 234 at 235.
Second the definition is designed to ensure that a dock or wharf standing alone is afforded the status (and accordingly the statutory protection) of a harbour. This view is supported by Douglas at p.110-1 which states:
"10.32 .. The definition of "harbour" in Section 57(1) of the [1964] Act includes wharves, quays and piers in addition to the water area. It does not, however, appear to include a mooring in the ordinary sense of the word.
10.34. It therefore appears that a charge made by a harbour authority for the use of their own moorings will not usually be a charge in respect of 'using ... the harbour' within the meaning of paragraph (a) of the definition of 'ship passenger and goods dues' because (in general at any rate) a mooring is not part of the essential harbour works - the infrastructure of the port - and not within the definition of 'harbour' in Section 57(1) of the [1964] Act."
(e) The construction I favour accords with the approach which should be adopted to resolving doubts when construing legislation of the character under consideration: (i) ambiguities in legislation should be resolved against according to a creditor a priority in respect of the recovery of his debt over other creditors and against subjecting property of a debtor to distraint and the debtor himself to payment of a penalty; and (ii) a construction should not be adopted which disturbs long standing and well established features of earlier legislation where there is no apparent reason for such change and no apparent intention on the part of the legislature to make the change and where the language of the statute does not manifest a clear intention to do so.
(f) In answer to the third question I therefore decide that the mooring charges in respect of Winnie Rigg do not constitute ship dues.
CONCLUSION
THE APPLICANT: My Lord, may I ask for my costs?
MR JUSTICE LIGHTMAN: Let us hear what the other side has to say.
MS McHUGH: My Lord, I appear on behalf of the Carrick District Council. I am instructed to resist the application for costs on this basis: the District Council and indeed the harbour authority have not acted in a way that was capricious or unreasonable. The court has taken a view of the statutory construction which is that not originally taken by my clients. My clients' view has not prevailed upon the court, nevertheless it is a matter, I understand, of some importance, particularly to harbour authorities, and it is another point before the court, as I understand it. In those circumstances, it is my submission that this is not an appropriate case for an Order to be made against my clients. I would ask that the court make no Order as to costs?
MR JUSTICE LIGHTMAN: There are two different areas of costs. The matter came before me on the first hearing when it was adjourned to enable Mrs Prankerd to put in further evidence relating to the question whether the Winnie Rigg was a vessel used in navigation. Therefore, there may be a difference in the costs of the previous hearing, but in relation to the main hearing the answer is that your clients came here to fight it, fought it and lost. Why should not the ordinary rule apply? I follow it is a matter of importance. I can see that you have a contention that you should have your costs, of the costs thrown away, of the earlier hearing when Mrs Prankerd received an adjournment. At the moment I am in some difficulty to see why you should not pay the costs of the hearing. Is it just on the basis that it is an important and difficult question?
MS McHUGH: Indeed, my Lord. Normally costs do follow the event, and I do appreciate that. These are just circumstances in which I am instructed to ask for an Order that no costs to be made on the basis I have submitted to your Lordship.
MR JUSTICE LIGHTMAN: Is there anything that you want to say?
MR BRENTON QC: My Lord, I have no submissions.
MR JUSTICE LIGHTMAN: Can you help me on this? Were you here on the earlier occasion?
MR BRENTON QC: My Lord, I was.
MR JUSTICE LIGHTMAN: The matter was adjourned on the earlier occasion to enable Mrs Prankerd to put in evidence to raise the issue as to whether this was a ship used in navigation.
MR BRENTON QC: Yes.
MR JUSTICE LIGHTMAN: So, prima facie, she should pay the costs thrown away by that application of that hearing?
MR BRENTON QC: Indeed.
MR JUSTICE LIGHTMAN: But the normal view is that costs will follow the event on the substantive hearing.
MR BRENTON QC: The analysis that your Lordship has put forward is entirely correct, that there are two separate issues of costs: the costs of the adjournment and the costs of the actual hearing itself.
MR JUSTICE LIGHTMAN: You will be sitting quietly by. The costs do not affect you?
MR BRENTON QC: My Lord, no.
MS McHUGH: My Lord, can I just add one other point? I received a draft Order.
MR JUSTICE LIGHTMAN: Do not worry about the form of the Order. At the moment, the form of Order (and I will hear what Mrs Prankerd has to say) I propose to make is a declaration in the terms that I am proposing with liberty to apply. I am not proposing to make any further Order because I have no doubt that you will comply with the declaration.
MS McHUGH: My Lord, indeed. It is simply that, on the question of costs, I noted from the draft Order that costs ought to be on an indemnity basis. I wanted to address you on that.
MR JUSTICE LIGHTMAN: I am not worried about that. Mrs Prankerd, so that you can understand what I am concerned about: you received an adjournment of the earlier hearing in order to put in further evidence to raise a question of whether there this was a ship used in navigation.
THE APPLICANT: Yes, but, my Lord, if you look at my notice, my application, I applied for that in the first application that came before you. I did apply for that.
MR JUSTICE LIGHTMAN: But you asked for an adjournment to put in further evidence, did you not?
THE APPLICANT: No.
MR JUSTICE LIGHTMAN: Yes, you did.
THE APPLICANT: My Lord, if I remember, you said that you could not determine the law without the facts and the evidence.
MR JUSTICE LIGHTMAN: Yes, I said that if you wanted to press ahead on that particular aspect, you would have to put in further evidence, so you needed an adjournment to put in further evidence.
THE APPLICANT: -- which was Hansard and Pepper v Hart in essence.
MR JUSTICE LIGHTMAN: I think it went much beyond that. There is a further affidavit that you have put in, to which then there was further evidence put in in reply.
THE APPLICANT: I did apply in the first application for this. It first came before Tucker J who passed it on to Harrison J. It then went from Harrison J to Collins J, and then it has been before you which was adjourned so that I could file further evidence and affidavit, which I did, and then it came before you .....
My Lord, could I refer you to my Statement of Claim, paragraph 17? May I just read it out to you:
"If, as previous averred, and now implied Council's deposition, the word SHIP, when used as a noun describes every vessel 'used in navigation' the fact that a vessel moored, or laid-up is not being 'used in navigation,' viz: not plying its trade on fixed courses. A vessel not under command, or under its own power is not being 'used in navigation'."
So I put that in my original application, my Lord. That was there. Without Hansard, my Lord, I think you would have come to the conclusion that all the other Judges came to, because when we came before you on April 2nd, I believe it was, you stated that you could not see anything regarding moorings in section 27. Therefore, you felt that they were right in section 26.
MR JUSTICE LIGHTMAN: I do not think I said that at all. What I said, if I said anything, is that there were no specific references to moorings in the statute.
THE APPLICANT: Yes, you did. Therefore, you felt that the Council could, which is when I challenged you that it was a biased statement. However, we have moved on from that now, my Lord. I did make this application in my motion. If this is an unlawful act and it is invalid, and they are wrong and I am right -- this is not the first time. There is another judicial review pending against their ultra vires actions again. They have now removed the facility for Winnie Rigg's clus (?), which is discrimination in national law and international law. This harbour authority knows no bounds, and any costs would be a Pyrrhic victory because a litigant, I think, is entitled to about £6 per hour, but a Queen's Counsel, which they had -- I do not know what they charge: £500? So if you were to award them their costs of April 2nd, then it would be a Pyrrhic victory of the costs.
MR JUSTICE LIGHTMAN: That may mean that it may be sensible for you to try and agree with them that there should be no Order for costs either way. I make it clear that at the moment it seems to me that on 2nd April you asked for an adjournment, and the normal rule is that you should pay the costs of that adjournment, but that you get the rest of the costs of the action. It may be that if you speak to the other side's counsel they may agree that the matter should proceed on the basis that there should be no Order for costs by consent throughout. That is a matter for you to discuss with them. On the ordinary principles that apply, I think that ought to be the position.
THE APPLICANT: I feel, my Lord, it is inequitable that I should have my costs. Harrison J reserved the costs of the substantive hearing, and I have succeeded and they have failed ----
MR JUSTICE LIGHTMAN: If Harrison J did, then this will pick up Harrison J's costs. I am only concerned about the costs of the adjournment before me on 2nd April.
THE APPLICANT: Whatever.
MR JUSTICE LIGHTMAN: Is that all you have to say?
THE APPLICANT: I feel that I should have my costs before Tucker J, before Harrison J, before ----
MR JUSTICE LIGHTMAN: What did they do? Any costs that they said would be costs in the cause, you pick those up.
THE APPLICANT: As my husband has just pointed out, my Lord, before you, on April 2nd, it was not a surprise. All I had done is added an addendum to my skeleton argument. The adjournment only provided me with a reply in rebuttal by obtaining Hansard and Pepper v Hart, because without that, my Lord, I do not think that the court would have come to the decision that it has come to today. I feel I should have my costs of 2nd April.
RULING AS REGARDS COSTS
MR JUSTICE LIGHTMAN: The question that now arises is a form of relief. It seems to me that the form of relief should be a declaration to the effect that I have already set out in the last paragraph in my judgment. I do not think it is necessary for there to be any mandatory Orders because, quite plainly, the Respondent will comply with that declaration. Of course, there will be liberty to apply in case it did not do so.
The only outstanding question is the matter of costs. Mrs Prankerd has succeeded in the action and, therefore, subject to one matter, it seems to me that she is entitled to her costs of the proceedings, and that will pick up any costs of earlier hearings which were directed to follow the costs of the proceedings.
The one exception is the costs of the hearing before me on 2nd April 1998, where what happened was that Mrs Prankerd wished to raise the question as to whether Winnie Rigg was a ship and for this purpose to put in further evidence. There was an adjournment of the hearing for that purpose. It seems to me, in accordance with the ordinary rules, that she should pay the costs of that indulgence, the obtaining of that adjournment. Therefore, the position is that in respect of those costs, she must pay the costs of the Respondent, but subject to that she should have all the costs of the cause, and I so direct.
THE APPLICANT: My Lord, can I have those on an indemnity basis?
MR JUSTICE LIGHTMAN: No, it will be on the ordinary basis. There is the no reason why it should be on an indemnity basis. Indemnity bases are quite exceptional. There is no impropriety which justifies any such -----
THE APPLICANT: My Lord, in every instance with my husband there has always been awarded to him on an indemnity basis against the Carrick District Council. The time and effort in researching Hansard does incur extra costs, extra time.
MR JUSTICE LIGHTMAN: No, I cannot do it. I am sorry.
Thank you very much.